Week 2 of August - Final Trade to Hit Weekly Max Profit!

$500 was originally the plan for September, but somehow it’s August 12th and I’ve hit that target already. I figured I’d give the second week of August another shot. (Read: there is no monthly profit target lockout in Tradovate; this really means I’m a degenerate gambler at heart!)

Have to say, on a $1000 account I’m more than happy with $500 in return - that’s a 50% return in two weeks! Just need to repeat the same performance in September, and October, and November, and December, and…

The trade was a simple market profile bet. Here’s the screenshot, then I’ll describe the trade:

This screenshot was taken a few hours after the trade, but the market profile looks remarkably the same. (and also funnily the current price is about the price I entered) What I saw to take this trade was the following:

• a bullish imbalance - price has spent much more time above the halfback of the session than below it

• a long tail to the bottom half of the profile, suggesting the auction around the 23600s is complete and there is no interest in price down there

• a poor high above, i.e. two TPOs sitting on the top row suggests that it may be cleaned up (i.e. exceeded in price) in the near future

• a double distribution in volume profile, where the higher high volume node around 23655 was probably just a few hundred contracts behind the current VPOC - could it be a new developing VPOC?

Indeed, it was a bet, like all trades are (you can never know for sure where price will go!) But for all the reasons above, it was fairly good bet in my opinion based on what I know about auction market theory. Basically, as long as I saw that the value area low would hold with conviction around 23630, I could look for a rotation higher.

I built a position of 3 contracts around the VPOC at 23640 (in thin overnight sessions, I like to average in so I can get a better overall price), and sure enough, after about 15 minutes, we popped up to the 23665s, hitting max profit for the week, upon which I was locked out :)

-Chris